City Council agrees to put tax hike on ballot

SAN DIEGO -- The City Council approved placing a measure on the
November ballot Wednesday asking San Diego voters to approve a
temporary half-cent sales tax increase to be levied only if a set
of financial and pension reform milestones are met first.

The City Council voted 6-2 during a special meeting to place the
measure on the Nov. 2 ballot.

Councilmen Kevin Faulconer and Carl DeMaio cast the dissenting
votes.

DeMaio labeled the sales tax increase a "bailout" for city
politicians and labor unions.

"This does not end the cycle of cuts, the cycle of coming back
and asking for more money from working families," DeMaio said. "It
will only perpetuate it."

The sales tax increase, which would expire after five years,
would generate about $103 million annually.

Before the tax could be levied, the city auditor would have to
confirm that 10 financial and pension reform benchmarks have been
completed.

Mayor Jerry Sanders testified that the revenue that would be
generated from the sales tax increase is "critically important" in
closing a projected budget shortfall of $72 million next fiscal
year.

"I do think the public deserves to have the right to decide what
level of public service, especially public safety service, that
they want," Sanders told the council. "I also think they have the
right to demand reform from us."

The City Council's decision to put the sales tax increase before
San Diego voters came after several weeks of back-and-forth
dealings, during which the idea was seemingly killed twice.

Last week, Councilwoman Donna Frye scuttled a previous attempt
to put a sales tax increase before voters because it wasn't linked
to financial reforms.

Two weeks ago, Sanders, under pressure from fellow Republicans
and business groups, abandoned his proposal to ask voters to
approve a half-cent sales tax hike.

Frye resurrected the proposed sales tax increase by linking it
to a package of financial and pension reforms, gaining Sanders'
support in the process.

If San Diego voters approve it, the city's sales tax will go
from 8.75 percent to 9.25 percent.

Brian Marvel, president of the San Diego Police Officers
Association, told the City Council that without the additional
revenue from a sales tax increase, sworn officers will be laid
off.

"Failure to maintain priority funding for law enforcement and
public safety will have direct and irreversible impact on every
resident of our city," Marvel said.

Tony Krvaric, chairman of the San Diego County Republican Party,
likened the sales tax increase to a "dash for cash" and vowed to
use all his resources to fight the ballot measure.

"Rest assured, these are fig leaf reforms," he said. "This is a
dash for cash."